What is MUTUAL FUND?
A Mutual Fund is an investment vehicle, through which a large number of investors pool in their money to invest in a range of financial securities such as stocks, bonds, money market instruments, etc., in line with the investment objectives agreed upon, between the mutual fund and the investors.
Why should you invest in MUTUAL FUND?
Diversification : A mutual fund spreads your money across a diverse number of securities. It ensures that all your eggs are not in one basket, thus reducing the risk in investment, which for an individual investor is though to practice.
Wide Choices : In India a wide variety of mutual fund schemes are offered by 43 mutual fund AMCs. So, there is a scheme available for every kind of risk and return appetite and every time horizon.
Safe & Convenient : It is possible for investors to structure their investments according to their liquidity and taxation requirements. Further, an investor can withdraw his investment fully or partially, anytime from the mutual fund. Mutual fund transactions are safe as all transactions are carried out via your bank account only.
Well Regulated : Mutual Funds are regulated by SEBI. The latter has mandated strict checks and is constantly refining rules and regulations to keep a check on mutual funds activities and hence ensures investors protection.
Tax Savings : Investment in ELSS Mutual Fund Schemes is eligible for deduction upto ₹ 1.50 Lacs p.a. under Section 80C of the Income tax Act. Further, ELSS scheme has the minimum lock in period of 3 years amongst all tax saving instruments.
Online Transactions : Now all mutual fund transactions can be executed completely online through a Demat account. Now an MF transaction can be done from your smart phone and no paperwork is involved.
Systematic : Option to invest systematically through SIP & STP and withdraw regularly through SWP.
Tax Benefits : Long term capital gain in MF is nil. If you invest in equity MF scheme for 1 year or more, you don’t have to pay any taxes on returns made by you.